HubSpot (HUBS) shares surged 5.74% in pre-market trading on Thursday, following the company's impressive fourth-quarter 2024 results and upbeat guidance for 2025, driven by its robust AI strategy and strong execution.

The customer relationship management (CRM) software provider reported better-than-expected earnings and revenue for Q4, with adjusted earnings per share (EPS) of $2.32, surpassing Wall Street estimates of $2.19. Revenue soared 21% year-over-year to $703.2 million, exceeding expectations of $673 million.

HubSpot's momentum was driven by several key factors, including growing multi-hub adoption, strong performance in the upmarket and down-market segments, improved customer retention, and product innovation. Notably, the company's focus on integrating artificial intelligence (AI) across its platform has emerged as a significant growth driver.

The company made significant strides in its AI strategy during the quarter, launching AI-powered features like Content Hub, AI agents for customer service, and a digital assistant called Breeze Copilot. These AI initiatives have gained traction among customers, driving growth and enabling businesses to optimize workflows and produce more effective content with less effort.

HubSpot's thriving partner ecosystem also contributed to its success, with co-selling increasing by an impressive 68% year-over-year, indicating strong collaboration and market penetration.

Looking ahead, HubSpot provided upbeat guidance for 2025, forecasting revenue between $2.985 billion and $2.995 billion, reflecting a year-over-year growth rate of 14%. The company remains committed to its AI-first approach, embedding AI capabilities across its platform to drive customer acquisition and expansion.

Analysts have responded positively to HubSpot's impressive performance, raising their price targets for the stock and praising the company's strong execution, AI strategy, and growth prospects.